Century Aluminum Company · NASDAQ:CENX
Century Aluminum — Q3 2019 Earnings Presentation
16 slides from Century Aluminum's earnings presentation, Nov 5, 2019
Slide 1: Century Aluminum Company 3rd Quarter Earnings Call
Century Aluminum Company 3rd Quarter Earnings Call November 5, 2019
Slide 2: Cautionary Statement
Cautionary Statement This presentation and statements made by Century Aluminum Company management on the quarterly conference call contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21
Slide 3: Speakers
Speakers • Mike Bless, President and Chief Executive Officer • Craig Conti, Executive Vice President and Chief Financial Officer • Peter Trpkovski, Director of Financial Planning and Analysis 2
Slide 4: Overview
Overview • Macro trends and signals mixed; sector fundamentals exhibiting some deterioration • Return of alumina price to historical valuation offsetting metal price weakness • Hawesville restart continuing on pace — fourth potline to be restarted Q1 • Progress to return Mt. Holly to full production
Slide 5: Industry Environment
Industry Environment Global Inventory Days of Primary Aluminum Consumption LME and Regional Premiums FY 2019 Supply and Demand Balance Alumina and Coke 1) Source: CRU Group, Century Aluminum Company 4
Slide 6: Operations
Operations Q219 vs. Q319 Performance Hawesville Sebree Mt. Holly Grundartangi Safety Flat Production(1) -16% -1% 0% 1% KPIs Flat Flat Controllable cost(2) 16% 2% 8% 2% 1) Production on a tonnes per day basis 2) Excludes raw materials and casting costs 5
Slide 7: Q319 Summary of Financial Results
Q319 Summary of Financial Results ($MM, except per share and tonne amounts) Q219 Q319 Income statement Shipments (tonnes) 203,380 198,543 Net sales $ 473 $ 438 Net income/(loss) (21) (21) Earnings/(loss) per share (0.23) (0.23) (1) Adjusted net income/(loss) (16) (37) (1) Adjusted earnings / (loss)
Slide 8: Q319 Adjusted EBITDA
Q319 Adjusted EBITDA 1) See reconciliation to comparable GAAP financial measure in appendix 7
Slide 9: Q319 Cash Flow
Q319 Cash Flow 1) See reconciliation to comparable GAAP financial measure in appendix 8
Slide 10: Earnings Benefit Lags Alumina Market Improvement
Earnings Benefit Lags Alumina Market Improvement Spot alumina prices impact Century reported earnings with ~3 month lag Realized Alumina Spot Alumina Price: Price: $390/Ton $283/Ton 1) Potential alumina price impact to EBITDA in a future quarter assuming all other inputs unchanged from Q3 levels 9
Slide 11: Appendix
Appendix
Slide 12: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted EBITDA, adjusted net income / (loss) and adjusted earnings / (loss) per share and net debt are non-GAAP financial measures that management uses to evaluate Century's financial performance. These non-GAAP financial measures facilitate comparisons of this period’s
Slide 13: Adjusted Net Income (Loss) Non-GAAP Reconciliation
Adjusted Net Income (Loss) Non-GAAP Reconciliation Q219 Q319 $MM EPS $MM EPS Net income (loss) as reported $ (20.7) $ (0.23) $ (20.7) $ (0.23) Lower of cost or NRV inventory adjustment, net of tax 9.0 0.10 (5.7) (0.06) Unrealized (gain) loss on derivative instruments (6.2) (0.07) (10.1) (0.11) Loss
Slide 14: Adjusted EBITDA Non-GAAP Reconciliation
Adjusted EBITDA Non-GAAP Reconciliation ($MM) Q219 Q319 Net income (loss) as reported $ (20.7) $ (20.7) Interest expense 5.8 5.6 Interest expense - term loan 0.6 0.8 Interest income (0.2) (0.2) Net (gain) loss on forward and derivative contracts (6.1) (10.3) Other (income) expense - net 1.7 0.9 Inco
Slide 15: Sensitivities
Sensitivities (6) ($MM) Variance Annual EBITDA LME +/- $100/T $ 76 MWP(1) +/- $0.01/lb 7 (2) EDPP +/- $22.04/T 7 (3) MISO Indiana Hub +/- $1/MWh 6 NYMEX Henry Hub Nat Gas(4) +/- $0.10/MMBtu 1 Alumina Price Index +/- $10/T 14 Coke (5) +/- $10/T 3 Pitch(5) +/- $10/T 1 1) Midwest Premium for all U.S. o
Slide 16: For Additional Information
For Additional Information Peter Trpkovski peter.trpkovski@centuryaluminum.com 312-696-3112 (Office) Century Aluminum Company One South Wacker Dr, Suite 1000 Chicago, IL 60606 312-696-3102 (Fax) www.centuryaluminum.com 15
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